Part 11 Contributions
Chapter 1 Exclusion of expenditure met by contributions
Exceptions to the general rule excluding contributions
536 Contributions not made by public bodies and not eligible for tax relief
1
A person (“R”) is to be regarded as having incurred expenditure (despite section 532(1)) to the extent that the requirements in subsections (2) and (3) are satisfied in relation to the expenditure.
2
The first requirement is that the person meeting R’s expenditure (“C”) is not a public body.
3
The second requirement is that—
a
no allowance can be made under Chapter 2 in respect of C’s expenditure, and
b
the expenditure is not allowed to be deducted in calculating the profits of a trade or relevant activity carried on by C.
4
When determining for the purposes of subsection (3)(a) whether an allowance can be made under Chapter 2, assume that C is within the charge to tax.
5
In subsection (3)(b) “relevant activity” means—
a
for the purposes of Part 2—
ii
a F6UK furnished holiday lettings business;
iii
an F7ordinary overseas property business;
F5iiia
an EEA furnished holiday lettings business;
iv
a profession or vocation;
v
vi
the management of an investment company;
b
for other purposes, a profession or vocation.